KB Home's first quarter results show resilience with a 3% increase in net orders, despite challenges in consumer demand and a cautious market outlook. The company is refocusing on its built-to-order strategy, projecting a stronger second half.

• Revenues reached approximately $1.1 billion, with diluted EPS of $0.52, aligning with company guidance.
• Net orders grew year-over-year to 2,846 but fell short of maintaining previous delivery expectations, prompting a revision of annual guidance.
• A strategic return to a built-to-order model, expected to comprise 70% of deliveries in the latter half of the year, aims to enhance gross margins and operational predictability.
• Shareholder returns totaled nearly $70 million through repurchases and dividends, while book value per share increased to over $61.
• Healthy community traffic and the lowest cancellation rate in four years signal a strong buyer base, though affordability and market uncertainties persist.